In light of the complexities involved in estate planning for unmarried couples, there is a growing necessity for lawyers and financial advisors to stay abreast of the latest regulations and legal considerations. As outlined in a recent article, which was authored by the esteemed legal firm Lippes Mathias LLP, asset distribution after the death of an individual can primarily occur in either of two ways.
The first method involves the transfer of assets by operation of law to specific beneficiaries. These beneficiaries may be designated in various financial instruments such as IRAs, life insurance policies, living trust agreements, or even as joint owners with rights of survivorship. The second method revolves around the probate or administration process, which is either in line with a last will and testament, colloquially known as a “Will”, or the laws of intestacy stipulated by the state.
The shift towards non-traditional family structures, including unmarried cohabitating couples, underscores the need for proper estate planning. Having a thorough understanding of the operative laws regarding asset distribution can not only help pre-empt potential issues and litigation but can also ensure the proper and fair distribution of assets.
While these measures may not encapsulate all the concerns an unmarried couple should consider for estate planning, they represent some of the central issues. As with all legal matters, consultation with a professional, well-versed in real estate laws of the specific state, is strongly advised.